44AD Income

This discussion clarifies the tax implications for a business with a turnover of ₹50 Lakhs and a book profit of ₹1 Lakh. It addresses whether an audit is mandatory or if Section 44AD, allowing taxation at 8% of turnover, can be applied. The key takeaway is that if gross total income doesn't exceed the basic exemption limit, a tax audit isn't required. However, when filing an Income Tax Return, the actual profit must be disclosed, not the presumptive profit under Section 44AD.